AES Indiana Switching Last Coal Units to Gas, Adding Solar and Storage
An Indiana electric utility has announced a $1.1 billion investment in that state that includes switching coal-fired units to run on natural gas, along with new solar power and battery energy storage projects.
AES Indiana, a subsidiary of AES Corp., and formerly known as Indianapolis Power & Light, on August 8 said it will convert two remaining coal-fired units at the Petersburg Generating Station in Pike County to burn natural gas by year-end 2026, providing more details about a move the group first announced earlier this year. The utility also announced it expects the Petersburg Energy Center, a 250-MW solar and 180-MWh energy storage facility currently under construction, to enter service by the end of 2025.
The utility on Thursday said the projects are creating about 300 jobs during construction, and will bring about $40 million in taxes and other economic benefits to Pike County in southern Indiana over the next 20 years.
The Petersburg station, which had more than 2 GW of generation capacity at its height, is located about 120 miles southwest of Indianapolis, on the White River. It has operated as a coal-fired power plant since the 1960s. Units 1 and 2, which entered operation in 1967 and 1969, respectively, were retired a few years ago. Unit 3 came online in 1977, and Unit 4 entered service in 1986. Those two units have combined generation capacity of 1,340 MW.
“These investments demonstrate our continued commitment to Pike County and leading the energy transition here in Indiana in a way that maintains affordability and reliability for our customers,” said Ken Zagzebski, AES senior vice president and Utilities president. “The economic growth across the state has been powered by our people at Petersburg for more than 50 years and will continue to play a significant role in Indiana’s economic future.”
Zagzebski told POWER: “How we serve our customers has evolved over the past decade due to advancement in new technology, environmental regulations and economic conditions. Repowering AES Indiana’s Petersburg Generating Station from coal to natural gas, along with the addition of solar and battery storage, aligns with our state’s energy policy. The state of Indiana is on the cusp of historic economic growth, and the $1.1 billion in investments in Pike County will help us deliver cleaner, more efficient, and cost-effective energy solutions to meet the state’s future energy needs.”
Integrated Resource Plan
AES Indiana said the projects at Petersburg align with the utility’s 2022 Integrated Resource Plan, which includes transitioning coal-powered units to burn natural gas, and adding as much as 1,300 MW of wind, solar, and battery storage capacity over the next five years.
The utility also is building the Pike County Battery Energy Storage project, a grid-connected battery energy storage system (BESS) with 200 MW of installed capacity and 800 MWh of dispatchable energy. The utility earlier this year said it expects that storage project, also located at the Petersburg station, could be online by year-end.
The group said the Pike County BESS “is an additional key component of AES Indiana’s strategy to ensure future reliability,” and also said it “will be one of the largest battery energy storage systems in the Midcontinent Independent System Operator (MISO).” MISO, headquartered in Carmel, Indiana, is one of two grid operators (the other is the PJM Interconnection) for the state.
“AES Indiana is a trusted local partner and leader in advancing clean energy,” said Petersburg Mayor R.C. Klipsch. “Our community is supportive of AES Indiana’s diverse energy projects which contribute to our local economic growth and improve environmental impact. With their planned investments of approximately $1.1 billion in Petersburg and Pike County from 2024 to 2026, AES Indiana continues to be a partner-of-choice by strengthening its commitment to our city and local workforce.”
Diverse Energy Mix
The utility on Thursday said it “is committed to a diverse energy mix and advanced technologies like wind, solar and battery storage to enhance grid reliability, affordability and sustainability,” noting that it recently acquired 100% interest in Hoosier Wind, a 106-MW operating wind project in Benton County. AES Indiana also announced the commercial operation of the Hardy Hills-195 MW solar project in Clinton County.
AES Indiana also announced a $100,000 donation to the city of Petersburg to support construction of the new Petersburg Community Center. The community center is expected to be completed by year-end 2026.
“The Petersburg Community Center will be an asset to the county and provide a sense of placemaking and pride in the community and spur population retention and population growth as a beautiful quality-of-life amenity,” said Ashley Willis, executive director of the Pike County Economic Development Corp. “We are incredibly grateful to AES Indiana for their partnership and continued support of Petersburg.”
—Darrell Proctor is senior editor for POWER (@POWERmagazine).